Payment ecosystem reconstruction: Empowering small and medium-sized enterprises with embedded technology

The latest research conducted by EY Parthenon and full stack payment technology service provider Finix shows that embedded payment technology is revolutionizing the transaction ecosystem for small and medium-sized enterprises, enabling non-financial platforms to provide payment solutions.

Market penetration status scan

The industry white paper released in June 2024 reveals key data:

40% of non-financial technology platforms have not yet integrated payment modules

Among the platforms that have deployed payment functions, 58% have achieved a user penetration rate of over 50%

70% of practitioners still position payment as an infrastructure function and do not recognize its growth potential

30% of leading companies have identified payments as a core strategic asset, resulting in a 42% increase in customer retention rate

Analysis of Technology Empowerment Path

Embedded payment creates value through three dimensions:

1. User experience upgrade: seamless connection between business flow and payment flow in industries such as healthcare and childcare services

2. Business model innovation: Industry SaaS platform opens up a second revenue curve, reducing customer acquisition costs by 37%

3. Data asset accumulation: Payment behavior analysis improves customer profile accuracy by 63%, supporting precision marketing

Trend of Merchant Demand Evolution

By 2025, the scale of embedded payment transactions is expected to exceed $6.5 trillion

78% of small and medium-sized enterprises tend to choose industry-specific payment solutions

The adoption rate of vertical domain solutions is 29 percentage points higher than that of general products

Opportunities for ecological niche reconstruction

1. Breakthrough in niche markets: Customized solutions for on-site services, professional nursing, and other scenarios to fill market gaps

2. Technology premium space: Platform bargaining power with industry know-how increases by 26%

3. Ecological Barrier Construction: Top SaaS Enterprises Increase Payment Module User Stay Time by 1.8 Times

Strategic entry point for service providers

Payment Technology Service Provider (PSP) breakthrough direction:

Modular product output: 41% of platforms are limited by development resources and require plug and play solutions

Joint operation mode: Reduce platform business priority conflict risk by 26%

Value recognition cultivation: Conduct industry training to enhance the LTV potential of the platform's cognitive payment module

Suggestions for implementing the roadmap

Risk return balance: Adopting a hierarchical cooperation model (basic access/joint development/independent operation)

Ecological collaboration strategy: Leading platforms can explore co building industry payment standards with financial institutions

In summary, the embedded payment model has greatly improved the efficiency of the financial and payment industries. People have accelerated the speed of transaction forms through embedded payments. In addition, information security technology makes transactions and payments more secure and reliable. Engaging in embedded payments now has unimaginable potential and benefits for the development of finance. In addition, embedded payments and AI payments can be combined to become intelligent transformation assistants for the modern financial industry. You can experience such a powerful embedded intelligent mode and enjoy the shock brought by the combination of finance and technology.

（Writer：Cily）